October 3rd in Economy by .

After Long Defeat Walmart Got It’s Foot In India

At last, Indian government opened the doors to Walmart, albeit with some restrictions. This make Walmart the first multinational retailer to enter India.As India announced last month that  it would allow foreign firms to take a majority stake in multi-brand stores for the first time. Basically, This is an ” Open House Party invitation” for all the investors.  Pretty soon Ikea, Swedish company will find some space in India.

According to New York Times, “Farmers stand to benefit from …

At last, Indian government opened the doors to Walmart, albeit with some restrictions. This make Walmart the first multinational retailer to enter India.As India announced last month that  it would allow foreign firms to take a majority stake in multi-brand stores for the first time. Basically, This is an ” Open House Party invitation” for all the investors.  Pretty soon Ikea, Swedish company will find some space in India.

According to New York Times, “Farmers stand to benefit from the significant reduction in post-harvest losses, expected to result from the strengthening of the back-end infrastructure,” reads a government statement. Currently, as much as 40 percent of the food grown by Indian farmers rots before reaching consumers, and spoilage of essential foods stockpiles also is a problem.

The regulations allowing large retailers such as Walmart to operate in India include the following conditions.

  1. Retailers cannot operate in states that do not agree to the policy.
  2. Retailers only may operate in large urban areas with more than one million people (India has more than 50).
  3. Retailers must provide “transport connectivity and parking.”
  4. Retailers must invest at least $100 million into the country, with at least half of direct investment made to “back-end infrastructure.”
  5. Retailers must source at least 30 percent of products from Indian small and midsize businesses, or alternatively install local facilities.
India’s rules are more restrictive than those of China, Thailand, Russia, Brazil and Indonesia, all of which allow foreign investors 100 percent ownership in retail, according to Goldman Sachs.
British-based Tesco PLC and French retailer Carrefour have also expressed interest in expanding in India.
Wal-Mart opened its first wholesale outlet in its partnership with Bharti in May 2009 in Amritsar in Punjab state.

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